As the Seimas debates the state budget, social democrats have labeled the opposition’s criticism as irresponsible. Rasa Budbergytė, Deputy Speaker of the Seimas and member of the Budget and Finance Committee, stated that the proposed budget solutions were dictated by the current context and circumstances, emphasizing that „fiscal policy cannot and should not become a mere accounting puzzle.”
„When the world around us is ablaze, we need decisive action, not paper-saving. Yet, the opposition is once again choosing its favorite role – to scare the public, count pennies, and miss the bigger picture. It’s convenient to moralize from the safe haven of opposition, talking about tightening belts at the expense of the vulnerable,” commented R. Budbergytė.
Lithuania’s Deficit is the Smallest in the Region
The parliamentarian recalled that when evaluating the last budget prepared by I. Šimonytė, the Bank of Lithuania and the State Audit Office warned of a programmed long-term increase in expenditures, deficit, and debt.
„Now, the same politicians are suggesting we ‘hit the brakes’ and paralyze defense funding. We urge the opposition to take responsibility and await constructive discussion and proposals,” emphasized R. Budbergytė.
According to the parliamentarian, when the state allocates as much as 5% of GDP to defense while simultaneously protecting citizens’ purchasing power, adhering to the usual fiscal norm is impossible.
„Increasing defense funding was a strategic decision, extremely important for the people of Lithuania and the country’s international standing. All EU border states are seeking solutions for deficits and borrowing under market conditions,” noted R. Budbergytė, Chair of the Seimas Committee on European Affairs.
She pointed out that Lithuania’s projected deficit for 2027 is 3.8%, the lowest in the region. Projected deficits are 4.2% in Latvia, 4% in Estonia, 4.5% in Finland, 5.25% in Germany, and a significant 7.1% in Poland.
Pension Indexation is Not ‘Extravagance’
R. Budbergytė stressed that most expenditures included in the budget are unavoidable and mandatory, such as rising loan interest, indexed pensions, and state contributions to the Health Insurance Fund.
„Pensioners cannot ‘earn more’ or ‘take care of themselves,’ as the liberals suggest. Pension indexation is not extravagance. It is the state’s commitment to people whose primary source of income is their pension. We simply cannot abandon them and condemn them to poverty,” commented R. Budbergytė.
According to the social democrat, the state must adhere to previous agreements, including collective agreements with statutory and non-statutory officials, education trade unions and teachers, as well as agreements on increasing the minimum monthly wage (MMA).
R. Budbergytė finds it particularly strange when conservatives moralize about borrowing, as everyone remembers that Ingrida Šimonytė borrowed at extremely high rates in her time, ignoring cheaper alternatives.
Employers Should Also Contribute to Pension Increases
He noted that the Government’s Family Package and the project for feeding primary school students received votes from all parties in the Seimas.
R. Budbergytė does not doubt that the Government will find ways to reduce excessive administrative costs without worsening the accessibility of services needed by the public.
The parliamentarian also supports the argument that Lithuania is one of the few EU countries where employers contribute virtually nothing to social insurance funds.
„Employers should also contribute to pension increases,” said R. Budbergytė, a member of the Seimas Budget and Finance Committee and a social democrat.
